GL Garrad Hassan will also provide inspection and monitoring services throughout project construction, and technical support to underpin the leveraged lease, to be provided by Citibank, N.A, when commercial operations commence.
The independent technical due diligence review conducted by GL Garrad Hassan includes an assessment of the energy production at the site, a review of the site suitability, and a technical assessment of the plant, the equipment and all of the material procurement, construction and operation contracts. In addition, the experts analyzed project costs and carried out a full financial model review. GL Garrad Hassan’s final independent engineering and wind resource assessment reports served as a foundation to inform the ten financial institutions involved in the project financing.
“We are very pleased with the quality of the technical due-diligence performed for us and the rest of the stakeholders on this project by the GL Garrad Hassan team. Their continued support will be instrumental in assuring construction quality and helping us to achieve a successful financial closing at commercial operation,” said Stuart Murray, Director, Infrastructure & Energy Finance for Citigroup.
The Alta Wind Energy Center is a 3,000 MW wind power development initiative. Construction commenced on the initial 150 MW Alta I project in March of this year and construction of the Alta II through V projects reviewed by GL Garrad Hassan (570 MW) started in July following financial closing. Commercial operation of the four phases is scheduled to occur in the first half of 2011. The term financing of Alta II-V is supported by a 144a bond issuance and structured as a leveraged lease whereby Citibank, N.A. will become the lessor to Terra-Gen at the start of commercial operations. Terra-Gen will manage and operate the wind projects under long-term agreements.
Phil Dutton, Vice President of Independent Engineering at GL Garrad Hassan for the North American region said “We are thrilled to be part of this ground-breaking project. Not only is its size significant both locally and nationally, it is also innovative in its use of the 144a bond issuance and leveraged lease type transaction, paving the way for similar financings for future renewable energy projects.”
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